Calculation
The amount of social savings (SS) may be calculated as
- SS = (PT0 − PT1)T1
where PT0 is the price per unit of the alternative technology, PT1 is the price of the technology being evaluated, and T1 is the quantity processed by the technology being evaluated. This saving in resource costs may be taken to be equal to the gain in real national income. Two noted social savings applications include social savings analysis on the contribution of the railway to the 19th century economic growth and the impact of information technology to the 20th century economic growth.
Read more about this topic: Social Savings
Famous quotes containing the word calculation:
“Common sense is the measure of the possible; it is composed of experience and prevision; it is calculation appled to life.”
—Henri-Frédéric Amiel (1821–1881)
““To my thinking” boomed the Professor, begging the question as usual, “the greatest triumph of the human mind was the calculation of Neptune from the observed vagaries of the orbit of Uranus.”
“And yours,” said the P.B.”
—Samuel Beckett (1906–1989)